Steve Madden to reduce China sourcing by up to 45% due to Trump's tariff plan.

• Over the next year, Steve Madden's CEO announced that the company will decrease its imports from China by up to 45%.
• During his presidential campaign, Donald Trump stated that he planned to impose a 10% to 20% tariff on all imports, with tariffs ranging from 60% to 100% on goods originating from China.
• Other retailers and brands have already started to reduce their reliance on China as a sourcing location due to the risks of tariffs, labor shortages, and supply chain disruptions.

The company announced on Thursday that it plans to reduce its imports from China by up to 45% in the next year in anticipation of President-elect Trump's promise to impose high tariffs on imports from other countries.

During an earnings call, CEO Edward Rosenfeld stated that the shoe brand has been preparing for a situation where it would need to expedite the movement of goods out of China. Over the past few years, the company has been exploring factory options in other countries, such as Cambodia, Vietnam, Mexico, and Brazil.

""Yesterday morning, we started implementing that plan, and you can expect the percentage of goods sourced from China to decrease more quickly in the future," he stated on Thursday."

According to Rosenfeld, two-thirds of Steve Madden's business are U.S. imports, and out of that, about 70% are sourced from China. This implies that nearly half of its business would be at risk if tariffs were imposed on Chinese imports.

We aim to decrease the percentage of goods sourced from China by approximately 40% to 45% within the next year. This would mean that if we successfully execute our plan, we would have only a quarter of our business exposed to potential tariffs on Chinese goods one year from now.

Trump is likely to urge businesses to shift their manufacturing to the U.S. during his campaign, he pledged to impose tariffs ranging from 10% to 20% on all imports, including up to 60% to 100% on goods from China.

Retailers and brands have diversified their sourcing due to various factors, such as reduced labor in China and the need to strengthen their supply chains after disruptions caused by the Covid pandemic and Red Sea shipping crisis.

The proposed tariffs may increase prices for U.S. consumers and decrease spending, as advised by retail analysts and trade groups.

Makeup and skincare maker CEO Tarang Amin stated that the company may need to increase prices on certain products if tariffs are implemented. He explained that the company has shifted more of its production outside of China since the tariffs were introduced under the Trump administration.

The handbag-, apparel- and accessory-maker, which is the parent company of Coach and Kate Spade, gets less than 10% of its overall sourcing from China, according to CFO Scott Roe. He stated this on a Thursday earnings call, adding that the company closely monitors tariff policy but has experience in staying flexible.

"We've faced numerous disruptions and challenges due to port strikes and freight lanes, and we've had to adapt to changing tariff regimes over time. As a result, we're skilled at managing through these challenges."

— CNBC's Gabrielle Fonrouge contributed to this report.